The former New Zealand cricket captain Chris Cairns has angrily denied allegations of match-fixing during a libel trial at the high court in London.

Cairns said repeatedly "I am not a cheat" as he was cross-examined by the QC acting for Lalit Modi, the ex-chairman of the Indian Premier League. Cairns is suing Modi over what he described as an "unequivocal allegation" of match-fixing made on Twitter.

The retired international cricketer claims that his achievements have been turned to "dust" by Modi's claim, made on the social network in January 2010. Modi is defending the action on the grounds of justification, maintaining that the charge is true.

Cairns repeatedly denied various allegations put to him by Ronald Thwaites QC, for Modi, under hours of questioning on the second day of the judge-only trial in London. The court heard that Cairns denied to directors of the Indian Cricket League in October 2008 that he was involved in match fixing.

"It was dressed as my name along with others … I refuted it and we moved on," Cairns said. "My answer is, I am not a cheat. Sir, I am not a cheat."

Cairns was paid $1m (£640,000) as captain of the Chandigarh Lions in three competitions in the now-defunct Indian Cricket League (ICL) between 2007 and 2008, the court was told. Modi's allegation of match fixing relates to the second and third of these competitions, between March and April 2008 and October and November 2008.

Thwaites, counsel for Modi, told the court that Cairns received two cash payments of $100,000 into his Dubai bank account shortly before the third edition of the ICL in late 2008. Cairns denied any imputation of wrongdoing, saying: "You [Thwaites] are deeming it as the first payment before a major tournament … I am deeming it as the first instalment of future occupation."

The all-rounder, who retired from Test cricket in 2004 after winning 62 caps, was suspended from the ICL in October 2008 along with his Candigarh Lions team-mate, Dinesh Mongia. Rumours of alleged match fixing circulated in the Indian media following the suspensions, the court was told.

Asked by Thwaites why Cairns did not ask the ICL to state in his notice of dismissal that he was not suspected of cricket corruption, the player said he took legal advice and "the tactic was not to inflame the situation".

Cairns said he asked his London-based lawyer to "shut down" the rumours. "I said to him, fix it. Sort it out. Shut it down." Cairns denies any involvement in match fixing.

Modi watched Tuesday's proceedings from the back of the court. He was suspended from his role as IPL commissioner in April 2010 over separate claims. The hearing continues.